House Study Bill 193 - IntroducedA Bill ForAn Act 1relating to matters under the purview of the economic
2development authority and the Iowa finance authority,
3including tax credit programs, the grow Iowa program and
4related bonds, incentives for manufacturers to invest in
5smart technologies, an energy infrastructure revolving loan
6program, and making appropriations, and including effective
7date and applicability provisions.
8BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1DIVISION I
2INVESTMENTS IN QUALIFYING BUSINESSES AND EQUITY INVESTMENTS IN
3INNOVATION FUNDS
4   Section 1.  Section 15.119, subsection 2, paragraph d, Code
52021, is amended to read as follows:
   6d.  (1)  The tax credits for investments in qualifying
7businesses issued pursuant to section 15E.43 and for equity
8investments in an innovation fund pursuant to section 15E.52
.
9In allocating tax credits pursuant to this subsection, the
10authority shall allocate two an aggregate of ten million
11dollars for purposes of this paragraph subparagraph, unless the
12authority determines that the tax credits awarded will be less
13than that amount.
   14(2)  On or before June 30 of each fiscal year the authority
15shall determine the amount of tax credits to be allocated
16for the next fiscal year beginning July 1 to investments
17in qualifying businesses and to equity investments in an
18innovation fund under subparagraph (1). Any tax credits
19allocated for purposes of subparagraph (1) and not awarded
20in that fiscal year shall be reallocated to a purpose under
21subparagraph (1) for the next fiscal year and shall not be
22counted against the aggregate maximum of ten million dollars.
23   Sec. 2.  Section 15.119, subsection 2, paragraph e, Code
242021, is amended by striking the paragraph.
25   Sec. 3.  Section 15E.43, subsection 2, paragraphs b and c,
26Code 2021, are amended to read as follows:
   27b.  The maximum amount of a tax credit that may be issued
28per calendar fiscal year to a natural person and the person’s
29spouse or dependent shall not exceed one hundred thousand
30dollars combined. For purposes of this paragraph, a tax
31credit issued to a partnership, limited liability company, S
32corporation, estate, or trust electing to have income taxed
33directly to the individual shall be deemed to be issued to
34the individual owners based upon the pro rata share of the
35individual’s earnings from the entity. For purposes of this
-1-1paragraph, “dependent” has the same meaning as provided by the
2Internal Revenue Code.
   3c.  The maximum amount of tax credits that may be issued
4per calendar fiscal year for equity investments in any one
5qualifying business shall not exceed five hundred thousand
6dollars.
7   Sec. 4.  APPLICABILITY.  The following applies to tax credits
8allocated on or after the fiscal year beginning July 1, 2021,
9and for each fiscal year thereafter:
   10The section of this division of this Act amending section
1115.119, subsection 2, paragraph “d”.
12   Sec. 5.  EFFECTIVE DATE.  This division of this Act, being
13deemed of immediate importance, takes effect upon enactment.
14DIVISION II
15GROW IOWA PROGRAM
16   Sec. 6.  NEW SECTION.  15.221  Legislative findings and intent
17— purpose.
   18The general assembly finds the following:
   191.  That creating attractive places for people to live and
20work includes developing regionally significant quality of life
21projects that leverage local community assets.
   222.  That community placemaking projects and recreational
23opportunities are vital components of Iowa’s workforce
24attraction and retention strategy.
   253.  That all across the state, individual communities offer
26something different that can be enhanced to appeal to the
27current or future workforce in or near that community.
28   Sec. 7.  NEW SECTION.  15.222  Definitions.
   29As used in this part, unless the context otherwise requires:
   301.  “Applicant” means a city, county, or nongovernmental
31organization located in this state that submits a coordinated
32application to the program.
   332.  “Coordinated application” means an application submitted
34by an applicant that includes all of the following:
   35a.  Input from all municipalities impacted by the proposed
-2-1project.
   2b.  Input from a nongovernmental organization that supports
3the proposed project.
   4c.  A statement regarding coordination with local
5stakeholders that have not provided input pursuant to paragraph
6“a” or “b”.
   73.  “Financial assistance” means assistance provided only
8from the funds, rights, and assets legally available to the
9authority and includes but is not limited to assistance in
10the form of grants, loans, forgivable loans, pledges, credit
11enhancements, and financing instruments.
   124.  “Fund” means the grow Iowa fund created in section
1315.226.
   145.  “Nonfinancial support” means the value of labor and
15services, real and personal property donated for purposes of a
16project, the use of real and personal property for purposes of
17a project, and any other support as approved by the board.
   186.  “Nongovernmental organization” means a nonprofit economic
19development organization or other nonprofit organization that
20sponsors or supports community or tourism attractions and
21activities.
   227.  “Program” means the grow Iowa program established in
23section 15.223.
   248.  “Vertical infrastructure” means land acquisition and
25construction, major renovation and major repair of buildings,
26all appurtenant structures, utilities, site development, and
27recreational trails. “Vertical infrastructure” does not include
28routine and recurring maintenance, or operational expenses
29or leasing of a building, appurtenant structure, or utility
30without a lease-purchase agreement.
31   Sec. 8.  NEW SECTION.  15.223  Grow Iowa program.
   321.  The board shall establish and the authority, subject
33to direction and approval by the board, shall administer a
34grow Iowa program to assist communities in the development
35of regionally significant quality of life projects that
-3-1leverage local community assets in coordination with economic
2development and workforce attraction and retention planning.
   32.  An applicant may submit a coordinated application to
4the board for financial assistance for the applicant’s project
5under the program. At a minimum, the coordinated application
6shall include all of the following information:
   7a.  The total capital investment for the project,
8including the costs for construction, site acquisition, and
9infrastructure improvement.
   10b.  A description of the proposed financing including the
11amount or percentage of local and private matching moneys to
12be provided for the project, and of the community’s need for
13financing through the program.
   14c.  A description of the benefits to the community from the
15project.
   16d.  An analysis of the long-term, tax-generating impact of
17the project.
   18e.  A description of how the project meets other criteria
19established in this part.
   20f.  An analysis of the projected long-term economic viability
21of the project, including projected revenues and expenses.
22   Sec. 9.  NEW SECTION.  15.224  Program eligibility.
   231.  The aggregate cost of an applicant’s project must be at
24least ten million dollars for an applicant to be eligible to
25receive financial assistance under the program. An applicant,
26or the board, may divide an applicant’s project into component
27parts. The board may award financial assistance under the
28program to one or more component parts of an applicant’s
29project, rather than award financial assistance for the
30applicant’s entire project.
   312.  An applicant shall demonstrate financial and
32nonfinancial support for the applicant’s project, which may
33be from public or private sources. Nonfinancial support must
34not total more than twenty-five percent of the aggregate cost
35of the project. The financial and nonfinancial support for
-4-1the applicant’s project shall equal at least fifty percent of
2the aggregate cost of the project if the project is located
3in a county with a population equal to or greater than fifty
4thousand, and at least forty percent of the aggregate cost
5of the project if the project is located in a county with a
6population of less than fifty thousand.
   73.  For an applicant’s project to be eligible for a financial
8assistance award, the project must satisfy all of the following
9criteria:
   10a.  The project must include vertical infrastructure that
11comprises a substantial portion of the project and that has a
12substantial regional or statewide economic impact.
   13b.  The project must support or be strategically aligned
14with existing regional or statewide cultural, recreational,
15entertainment, economic development, or educational activities;
16or with communities adjacent to cultural and entertainment
17districts whose existing or planned amenity base will augment
18or complement the cultural, entertainment, and quality of life
19venues of the cultural and entertainment districts.
   20c.  The project must increase the diversity of activities
21available to individuals that reside or work in the state,
22families, and tourists.
   23d.  The project must enhance the potential for the successful
24recruitment and retention of young people to reside and work
25in the state.
   26e.  There must be identifiable economic obstacles, or
27other identifiable obstacles, impeding local financing of the
28project.
   29f.  The project must not compete with a different project
30with a similar purpose that is located in the same region of
31the state as the applicant’s project.
   324.  a.  The board shall not approve a coordinated application
33that seeks financial assistance under the program to refinance
34any loan, or pay off any promissory note, that has been
35executed prior to the date of submission of the coordinated
-5-1application.
   2b.  The board shall not approve a coordinated application for
3a project for which financial assistance has previously been
4awarded under the program, unless the applicant can demonstrate
5that any additional financial assistance approved by the board
6will be used for a significant expansion of that project.
7   Sec. 10.  NEW SECTION.  15.225  Coordinated applications —
8review.
   91.  Coordinated applications shall be submitted to the
10authority. Coordinated applications that meet the eligibility
11criteria shall be forwarded to the board by the authority. The
12authority shall also forward to the board, and to the review
13committee established under subsection 2, the authority’s
14review and evaluation of all eligible coordinated applications.
   152.  The authority shall consider, in addition to other
16criteria established in this part, all of the following when
17reviewing a coordinated application to determine if a proposed
18project is eligible for financial assistance:
   19a.  Whether wages, benefits, including health benefits,
20safety parameters, and other attributes of the project will
21improve the quality of existing community, regional, or
22statewide cultural, recreational, entertainment, educational,
23or employment opportunities.
   24b.  The extent to which the project will generate additional
25community or regional attractions, and opportunities to
26increase tourism to the community or region.
   27c.  The potential for the project to produce a long-term,
28tax-generating economic impact in excess of the financial
29assistance proposed by the applicant.
   30d.  The geographic diversity of the project in relation to
31other proposed projects.
   32e.  The investment in the project by the city, county,
33region, or private funding sources.
   34f.  Alternative funding sources available to the project.
   35g.  The long-term economic viability of the project.
-6-
   1h.  The extent to which the project has taken the following
2planning principles into consideration:
   3(1)  A community-driven development process that leverages
4local assets to develop destinations that create a local
5identity distinct to the community.
   6(2)  Efficient and effective use of land resources and
7existing infrastructure by encouraging development in areas
8with existing infrastructure or capacity to avoid costly
9duplication of services and costly use of land.
   10(3)  Conservation of open space and farmland, and
11preservation of critical environmental areas.
   12(4)  Promotion of the livability, safety, and revitalization
13of existing urban and rural communities.
   14(5)  Maintenance of a unique sense of place by respecting
15local cultural and natural environmental features.
   16(6)  Mitigation of adverse impact to water quality or
17improvements to water quality.
   18(7)  Adaptability for access by different modes of
19transportation and compatibility with changing patterns of
20transportation.
   21(8)  Adaptability of project for future changes.
   22(9)  Creation of desirable destinations for living, working,
23and recreation.
   24(10)  Inclusive environments to encourage participation by a
25diverse range of individuals, groups, and organizations.
   26i.  The probability that the project will incorporate or
27promote other priorities of the state including:
   28(1)  Other economic development programs authorized under
29this chapter.
   30(2)  Accessibility, diversity, and inclusion by seeking
31input for the project from a diverse stakeholder group.
   32(3)  Creation or retention of jobs.
   33(4)  Increased broadband connectivity.
   34(5)  Improved water quality as outlined by the Iowa nutrient
35reduction strategy as defined in section 455B.171.
-7-
   1(6)  Development of new housing or renovation of existing
2housing.
   3(7)  Repurposing of commercial properties in excess of one
4acre that include a significant component that is publicly
5accessible for recreation and community activities.
   63.  A review committee shall review coordinated applications
7forwarded by the authority and shall make a recommendation to
8the board regarding whether a project proposed in a coordinated
9application should be awarded financial assistance. The review
10committee shall be composed of two members of the board,
11two members of the enhance Iowa board established pursuant
12to section 15F.102, and two members from the state at large
13appointed by the director.
   144.  Upon the recommendations of the review committee, the
15board shall approve, defer, or deny a coordinated application.
16If a coordinated application is approved, the board shall enter
17into an agreement with the applicant to provide financial
18assistance authorized under the program.
19   Sec. 11.  NEW SECTION.  15.226  Grow Iowa fund.
   201.  A grow Iowa fund is created and established as a separate
21and distinct fund in the state treasury under the control of
22the authority. The moneys in the fund are appropriated to the
23board for purposes of the grow Iowa program established in
24section 15.223. Moneys in the fund shall not be subject to
25appropriation for any other purpose by the general assembly,
26but shall be used only for purposes of the fund. The Iowa
27finance authority shall act as custodian of the fund and shall
28disburse moneys contained in the fund as directed by the board,
29including automatic disbursements of funds received pursuant
30to the terms of bond indentures and documents and security
31provisions to trustees. The fund shall be administered by the
32board which shall make expenditures from the fund consistent
33with the purposes of the program without further appropriation.
34An applicant shall not receive more than fifty million dollars
35in financial assistance from the fund.
-8-
   12.  Revenue for the fund shall include but is not limited to
2the following, which shall be deposited with the treasurer of
3state or the treasurer’s designee as provided by any bond or
4security documents and credited to the fund:
   5a.  The proceeds of bonds issued to capitalize and pay the
6costs of the fund and investment earnings on the proceeds.
   7b.  Interest attributable to investment of money in the fund
8or an account of the fund.
   9c.  Moneys in the form of a devise, gift, bequest, donation,
10federal grant or other grant, reimbursement, repayment,
11judgment, transfer, payment, or appropriation from any source
12intended to be used for purposes of the fund.
   133.  Notwithstanding section 8.33, moneys appropriated in
14this section that remain unencumbered or unobligated at the
15close of the fiscal year shall not revert but shall remain
16available for expenditure for the purposes designated until the
17close of the succeeding fiscal year.
   184.  Notwithstanding section 12C.7, subsection 2, interest or
19earnings on moneys in the fund shall be credited to the fund.
   205.  a.  The Iowa finance authority may create and establish
21one or more special funds, to be known as “bond reserve funds”,
22to secure one or more issues of bonds or notes issued pursuant
23to section 16.230. The Iowa finance authority shall pay
24into each bond reserve fund any moneys appropriated and made
25available by the state or by the Iowa finance authority for the
26purpose of the fund, any proceeds of sale of notes or bonds
27to the extent provided in the resolutions authorizing their
28issuance, and any other moneys from any other sources which may
29be available to the Iowa finance authority for the purpose of
30the fund. All moneys held in a bond reserve fund, except as
31otherwise provided in paragraph “b”, shall be used as required
32solely for the payment of the principal of bonds secured in
33whole or in part by the fund or of the sinking fund payments
34with respect to the bonds, the purchase or redemption of the
35bonds, the payment of interest on the bonds, or the payments
-9-1of any redemption premium required to be paid when the bonds
2are redeemed prior to maturity.
   3b.  Moneys in a bond reserve fund shall not be withdrawn from
4the fund at any time in an amount that will reduce the amount
5of the fund to less than the bond reserve fund requirement
6established for the fund, as provided in this subsection,
7except for the purpose of making, with respect to bonds secured
8in whole or in part by the fund, payment when due of principal,
9interest, redemption premiums, and the sinking fund payments
10with respect to the bonds for the payment of which other moneys
11of the Iowa finance authority are not available. Any income or
12interest earned by, or incremental to, a bond reserve fund due
13to the investment of that bond reserve fund may be transferred
14by the Iowa finance authority to other funds or accounts to
15the extent the transfer does not reduce the amount of the bond
16reserve fund below its bond reserve fund requirement.
   17c.  The Iowa finance authority shall not issue bonds, secured
18in whole or in part by a bond reserve fund if, upon the issuance
19of the bonds, the amount in the bond reserve fund will be less
20than the bond reserve fund requirement for the fund, unless the
21Iowa finance authority at the time of issuance of the bonds
22deposits in the fund from the proceeds of the bonds issued or
23from other sources an amount which, together with the amount
24then in the fund, will not be less than the bond reserve fund
25requirement for the fund. For the purposes of this subsection,
26the term “bond reserve fund requirement” means, as of any
27particular date of computation, an amount of money, as provided
28in the resolutions authorizing the bonds with respect to which
29the fund is established.
   30d.  To assure the continued solvency of any bonds secured in
31whole or in part by the bond reserve fund, provision is made in
32paragraph “c” for the accumulation in each bond reserve fund
33of an amount equal to the bond reserve fund requirement for
34the fund. To further assure maintenance of the bond reserve
35funds, the Iowa finance authority shall annually, on or before
-10-1January 1, make and deliver to the governor the treasurer’s
2certificate stating the sum, if any, required to restore each
3bond reserve fund to the bond reserve fund requirement for that
4fund. Within thirty calendar days after commencement of the
5next session of the general assembly immediately following
6delivery of the certificate, the governor shall submit to both
7chambers of the general assembly a printed copy of a budget
8including the sum, if any, required to restore each bond
9reserve fund to the bond reserve fund requirement for that
10fund. Any sums appropriated by the general assembly and paid
11to the Iowa finance authority pursuant to this subsection shall
12be deposited by the Iowa finance authority in the applicable
13bond reserve fund.
14   Sec. 12.  NEW SECTION.  16.230  General and specific bonding
15powers — grow Iowa program.
   161.  For purposes of this part, “economic development
17authority board”
means the members of the economic development
18authority appointed by the governor and in whom the powers of
19the authority are vested pursuant to section 15.105, subsection
201, paragraph “a”.
   212.  The authority may issue bonds upon the request of the
22economic development authority board and the authority shall
23have all powers necessary to issue and secure bonds and to
24carry out the purposes of the grow Iowa fund created in section
2515.226. The authority may issue bonds in principal amounts
26which, in the opinion of the economic development authority
27board, are necessary to provide sufficient funds for the
28grow Iowa fund, the payment of interest on the bonds, the
29establishment of reserves to secure the bonds, the costs of
30issuance of the bonds, other expenditures of the authority
31incident to and necessary or convenient to carry out the
32bond issue for the fund, and all other expenditures of the
33economic development authority board necessary or convenient to
34administer the fund; provided, however, excluding the issuance
35of refunding bonds, bonds issued pursuant to this section
-11-1shall not be issued in an aggregate principal amount which
2exceeds one hundred million dollars. The bonds are investment
3securities and negotiable instruments within the meaning of and
4for purposes of the uniform commercial code, chapter 554.
   53.  Bonds issued under this section are payable solely
6and only out of the moneys, assets, or revenues of the grow
7Iowa fund and any bond reserve funds established pursuant to
8section 15.226, all of which may be deposited with trustees
9or depositories in accordance with bond or security documents
10and pledged by the economic development authority board to the
11payment thereof. Bonds issued under this section shall contain
12on their face a statement that the bonds do not constitute an
13indebtedness of the state. The authority shall not pledge
14the credit or taxing power of this state or any political
15subdivision of this state or make bonds issued pursuant to this
16section payable out of any moneys except those in the grow Iowa
17fund.
   184.  The proceeds of bonds issued by the authority and not
19required for immediate disbursement may be deposited with a
20trustee or depository as provided in the bond documents and
21invested or reinvested in any investment as directed by the
22economic development authority board and specified in the trust
23indenture, resolution, or other instrument pursuant to which
24the bonds are issued without regard to any limitation otherwise
25provided by law.
   265.  The bonds shall be:
   27a.  In a form, issued in denominations, executed in a manner,
28and payable over terms and with rights of redemption, and be
29subject to such other terms and conditions as prescribed in the
30trust indenture, resolution, or other instrument authorizing
31their issuance.
   32b.  Negotiable instruments under the laws of the state and
33may be sold at prices, at public or private sale, and in a
34manner, as prescribed by the authority. Chapters 73A, 74, 74A,
35and 75 shall not apply to the sale or issuance of the bonds.
-12-
   1c.  Subject to the terms, conditions, and covenants providing
2for the payment of the principal, redemption premiums, if
3any, interest, and other terms, conditions, covenants, and
4protective provisions safeguarding payment, not inconsistent
5with this section and as determined by the trust indenture,
6resolution, or other instrument authorizing their issuance.
   76.  The bonds are securities in which public officers and
8bodies of this state; political subdivisions of this state;
9insurance companies and associations and other persons engaged
10in the business of insurance; banks, trust companies, savings
11associations, and investment companies; administrators,
12guardians, executors, trustees, and other fiduciaries;
13and other persons authorized to invest in bonds or other
14obligations of the state, may properly and legally invest
15funds, including capital, in their control or belonging to
16them.
   177.  Bonds must be authorized by a trust indenture,
18resolution, or other instrument of the authority approved by
19the economic development authority board. However, a trust
20indenture, resolution, or other instrument authorizing the
21issuance of bonds may delegate to an officer of the economic
22development authority board the power to negotiate and fix the
23details of an issue of bonds.
   248.  A resolution, trust agreement, or any other instrument
25by which a pledge is created shall not need to be recorded or
26filed under the Iowa uniform commercial code, chapter 554, to
27be valid, binding, or effective.
   289.  Bonds issued under this section are declared to be issued
29for a general public and governmental purpose and all bonds
30issued under this section shall be exempt from taxation by the
31state of Iowa and the interest on the bonds shall be exempt
32from the state income tax and the state inheritance tax.
   3310.  Subject to the terms of any bond documents, moneys in
34the grow Iowa fund may be expended for administration expenses.
   3511.  The authority may issue bonds for the purpose of
-13-1refunding any outstanding bonds or notes issued pursuant
2to this section, including the payment of any redemption
3premiums thereon and any interest accrued or to accrue to the
4date of redemption of the outstanding bonds or notes. Until
5the proceeds of bonds issued for the purpose of refunding
6outstanding bonds or notes are applied to the purchase or
7retirement of outstanding bonds or notes or the redemption
8of outstanding bonds or notes, the proceeds may be placed in
9escrow and be invested and reinvested in accordance with the
10provisions of this section. The interest, income, and profits
11earned or realized on an investment may also be applied to the
12payment of the outstanding bonds or notes to be refunded by
13purchase, retirement, or redemption. After the terms of the
14escrow have been fully satisfied and carried out, any balance
15of proceeds and interest earned or realized on the investments
16may be returned to the economic development authority board
17for deposit in the grow Iowa fund. All refunding bonds shall
18be issued and secured and subject to the provisions of this
19chapter in the same manner and to the same extent as other
20bonds issued pursuant to this section.
21   Sec. 13.  NEW SECTION.  16.231  Pledges.
   22It is the intention of the general assembly that a pledge
23made in respect of bonds or notes shall be valid and binding
24from the time the pledge is made, that the money or property
25so pledged and received after the pledge by the authority
26shall immediately be subject to the lien of the pledge without
27physical delivery or further act, and that the lien of the
28pledge shall be valid and binding as against all parties having
29claims of any kind in tort, contract, or otherwise against the
30authority whether or not the parties have notice of the lien.
31   Sec. 14.  NEW SECTION.  16.232  Projects.
   32The economic development authority board may undertake
33a project for two or more applicants jointly, or for any
34combination of applicants, and may combine for financing
35purposes, with the consent of all of the applicants involved,
-14-1the project and some or all future projects of any applicant,
2and sections 15.226 and 16.230 through 16.234, apply to, and
3for, the benefit of the economic development authority board
4and the joint applicants. The money set aside in a fund or
5funds pledged for any series or issue of bonds or notes,
6however, shall be held for the sole benefit of the series or
7issue separate and apart from money pledged for another series
8or issue of bonds or notes of the authority. To facilitate
9the combining of projects, bonds or notes may be issued in
10series under one or more resolutions or trust agreements and
11may be fully open-ended, providing for the unlimited issuance
12of additional series, or partially open-ended, limited as
13to additional series. For the purposes of this section,
14“applicant” means the same as defined in section 15.222.
15   Sec. 15.  NEW SECTION.  16.233  Limitations.
   16Bonds or notes issued pursuant to section 16.230 shall not
17be debts of the state, nor of any political subdivision of
18the state, and shall not constitute a pledge of the faith and
19credit of the state or constitute a charge against the general
20credit or general fund of the state. The issuance of any bonds
21or notes pursuant to section 16.230 by the authority shall not
22directly, indirectly, or contingently obligate the state or a
23political subdivision of the state to apply moneys from, or
24to levy or pledge any form of taxation to, the payment of the
25bonds or notes.
26   Sec. 16.  NEW SECTION.  16.234  Construction.
   27Being necessary for the welfare of this state and its
28inhabitants, sections 16.230 through 16.233 shall be liberally
29construed to effect the purposes of those sections.
30   Sec. 17.  Section 422.7, subsection 2, Code 2021, is amended
31by adding the following new paragraph:
32   NEW PARAGRAPH.  v.  Grow Iowa program bonds pursuant to
33section 16.230.
34DIVISION III
35COMMUNITY ATTRACTION AND TOURISM
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1   Sec. 18.  Section 12.72, subsection 1, Code 2021, is amended
2to read as follows:
   31.  A vision Iowa fund is created and established as a
4separate and distinct fund in the state treasury. The moneys
5in the fund are appropriated to the enhance Iowa board for
6purposes of the vision Iowa program established in section
715F.302, Code 2021. Moneys in the fund shall not be subject to
8appropriation for any other purpose by the general assembly,
9but shall be used only for the purposes of the vision Iowa
10fund. The treasurer of state shall act as custodian of the
11fund and disburse moneys contained in the fund as directed
12by the enhance Iowa board, including automatic disbursements
13of funds received pursuant to the terms of bond indentures
14and documents and security provisions to trustees. The fund
15shall be administered by the enhance Iowa board which shall
16make expenditures from the fund consistent with the purposes
17of the vision Iowa program without further appropriation. An
18applicant under the vision Iowa program shall not receive more
19than seventy-five million dollars in financial assistance from
20the fund.
21   Sec. 19.  Section 12.73, Code 2021, is amended to read as
22follows:
   2312.73  Vision Iowa fund moneys — administrative costs.
   24During the term of the vision Iowa program established in
25section 15F.302, Code 2021, two hundred thousand dollars of the
26moneys deposited each fiscal year in the vision Iowa fund and
27appropriated for the vision Iowa program shall be allocated
28each fiscal year to the economic development authority for
29administrative costs incurred by the authority for purposes of
30administering the vision Iowa program.
31   Sec. 20.  Section 12.75, subsection 2, Code 2021, is amended
32to read as follows:
   332.  For purposes of this section, “applicant” means a city or
34county or public organization applying for financial assistance
35under the vision Iowa program established in section 15F.302,
-16-1Code 2021
.
2   Sec. 21.  Section 15F.102, subsection 6, Code 2021, is
3amended to read as follows:
   46.  Each voting member of the board shall serve on at least
5one of the three review committees referred to in sections
615F.203, 15F.304, Code 2021, and 15F.402.
7   Sec. 22.  Section 15F.103, subsections 2 and 3, Code 2021,
8are amended to read as follows:
   92.  Establish the vision grow Iowa program and the community
10attraction and tourism program.
   113.  Oversee and provide approval of the administration of
12the vision grow Iowa program and the community attraction and
13tourism program by the authority.
14   Sec. 23.  Section 15F.106, Code 2021, is amended to read as
15follows:
   1615F.106  Benefits.
   17Any applicant awarded financial assistance by the board
18under both the vision Iowa program established in section
1915F.302 and
the community attraction and tourism program
20established in section 15F.202 shall provide and pay at least
21fifty percent of the cost of a standard medical insurance plan
22for all full-time employees working at the project after the
23completion of the project for which financial assistance was
24received.
25   Sec. 24.  Section 15F.206, subsection 1, Code 2021, is
26amended to read as follows:
   271.  Applications for assistance for river enhancement
28community attraction and tourism projects shall be submitted
29to the authority. For those applications that meet the
30eligibility criteria, the authority shall provide a staff
31review analysis and evaluation to the vision Iowa program
32review committee referred to in section 15F.304, subsection 2,
33and the
board.
34   Sec. 25.  Section 292.2, subsection 9, Code 2021, is amended
35by striking the subsection.
-17-
1   Sec. 26.  REPEAL.  Sections 15F.301, 15F.302, 15F.303, and
215F.304, Code 2021, are repealed.
3   Sec. 27.  APPLICABILITY.  The section of this division
4of this Act amending section 15F.106 applies to financial
5assistance awarded to an applicant by the enhance Iowa board
6under the community attraction and tourism program on or after
7July 1, 2021.
8DIVISION IV
9STATEWIDE TOURISM MARKETING CAMPAIGN FUNDING
10   Sec. 28.  Section 123.17, Code 2021, is amended by adding the
11following new subsection:
12   NEW SUBSECTION.  6A.  After any transfers provided for
13in subsections 3, 5, and 6, the department of commerce shall
14transfer to the economic development authority from the beer
15and liquor control fund and before any other transfer to the
16general fund, an amount not to exceed five million dollars
17annually for a statewide tourism marketing campaign under
18section 15.108, subsection 5.
19DIVISION V
20Manufacturing 4.0
21   Sec. 29.  NEW SECTION.  15.371  Manufacturing 4.0 technology
22investment program.
   231.  This section shall be known as and may be cited as the
24“Manufacturing 4.0 Technology Investment Program”.
   252.  For purposes of this section unless the context otherwise
26requires:
   27a.  “Financial assistance” means the same as defined in
28section 15.102.
   29b.  “Manufacturing 4.0 technology investments” means projects
30that are intended to lead to the adoption of, and integration
31of, smart technologies into existing manufacturing operations
32located in the state by mitigating the risk to the manufacturer
33of significant technology investments.
   343.  a.  A manufacturing 4.0 technology investment fund
35is created within the state treasury under the control of
-18-1the authority for the purpose of financing manufacturing 4.0
2technology investments as described in this section.
   3b.  The fund may be administered as a revolving fund and
4may consist of any moneys appropriated by the general assembly
5for purposes of this section and any other moneys that are
6lawfully available to the authority. Any moneys appropriated
7to the fund shall be used for purposes of the manufacturing
84.0 technology investment program. The authority may use all
9other moneys in the fund, including interest, earnings, and
10recaptures, for purposes of this section.
   11c.  Notwithstanding section 8.33, moneys appropriated in this
12section that remain unencumbered or unobligated at the close of
13the fiscal year shall not revert but shall remain available for
14expenditure for the purposes designated until the close of the
15succeeding fiscal year.
   16d.  Notwithstanding any law to the contrary, the authority
17may transfer any unobligated and unencumbered moneys in the
18fund, except for moneys appropriated for purposes of this
19section, to any fund created pursuant to section 15.106A,
20subsection 1, paragraph “o”.
   214.  The authority shall establish and administer a
22manufacturing 4.0 technology investment program and shall use
23moneys in the fund to award financial assistance to eligible
24manufacturers for manufacturing 4.0 technology investments.
   255.  The authority shall establish by rule a manufacturing
264.0 review committee that shall review each application
27received by the authority for the program, and that shall make
28recommendations to the board regarding all of the following:
   29a.  The completeness of the application.
   30b.  Whether the board should approve or deny an application.
   31c.  If an application is approved, the type and amount of
32financial assistance to be awarded to the applicant.
   336.  The authority shall adopt rules pursuant to chapter 17A
34necessary to implement and administer this section.
35   Sec. 30.  NEW SECTION.  15.372  Additional first-year
-19-1depreciation.
   21.  Overview.  The authority may approve a manufacturing
3business located in this state to claim additional first-year
4depreciation for certain investments made by the business to
5transition to a smart manufacturing environment that leverages
6joint capabilities of hardware, software, and workers in an
7integrated way.
   82.  Eligibility.  To claim additional first-year
9depreciation, a business must make an eligible investment.
10For purposes of this section, “eligible investment” means
11an investment in smart manufacturing equipment that is
12digitized and interconnected, and that modernizes a business’s
13operations by supporting interconnectivity, decision support,
14customization, and flexibility of production runs, or that
15decentralizes low-level decision making.
   163.  Application and agreement.
   17a.  A business seeking approval to claim additional
18first-year depreciation for an eligible investment shall make
19application to the authority in the manner prescribed by the
20authority by rule. The application must include all of the
21following:
   22(1)  A description of the investment the business proposes
23to make and a statement describing how the investment will
24transition the business to a smart manufacturing environment.
   25(2)  The projected amount of the eligible investment.
   26(3)  The projected date that the eligible investment will be
27placed-in-service.
   28b.  Completed applications shall be reviewed pursuant to
29rules adopted by the authority. Upon review of an application,
30the board shall determine if the proposed investment is an
31eligible investment and shall determine the maximum amount of
32the eligible investment the business is eligible to claim for
33additional first-year depreciation.
   34c.  If an application is approved the authority shall notify
35the business. The notification shall include the maximum
-20-1amount of the eligible investment the business is eligible to
2claim for additional first-year depreciation after all terms
3and conditions imposed by the agreement entered into pursuant
4to paragraph “d” have been satisfied.
   5d.  After receipt of the notification under paragraph “c”,
6the business shall enter into an agreement with the authority
7that specifies the terms and conditions that must be satisfied
8for the business to claim additional first-year depreciation
9on its eligible investment. The agreement must include all of
10the following:
   11(1)  A description of the business’s eligible investment.
   12(2)  The maximum amount of the eligible investment the
13business is allowed to claim for additional first-year
14depreciation.
   15(3)  The projected placed-in-service date for the business’s
16eligible investment.
   17(4)  The date by which the business must file a written
18report with the authority that provides all of the following:
   19(a)  The actual date of completion of the business’s eligible
20investment.
   21(b)  The actual dollar amount of the business’s eligible
22investment.
   23(c)  The actual placed-in-service date for the business’s
24eligible investment.
   25e.  Upon review of the report submitted under paragraph “d”,
26subparagraph (4), and verification by the authority of the
27actual dollar amount of the business’s eligible investment, the
28authority shall notify the business of the amount of eligible
29investment the business may claim as additional first-year
30depreciation. The authority shall notify the department of
31revenue of the amount of eligible investment the business may
32claim as additional first-year depreciation and shall submit a
33list to the department of the assets deemed to be part of the
34business’s eligible investment.
   354.  Benefit.  Notwithstanding section 422.7, subsection
-21-139 or 39A, or section 422.35, subsection 19 or 19A, for a
2business that is approved by the authority for an eligible
3investment, section 168(k) of the Internal Revenue Code applies
4for the computing of net income of the business for state tax
5purposes up to the amount of eligible investment approved by
6the authority.
   75.  Compliance.  If a business fails to complete the
8installation of its eligible investment or fails to comply with
9terms and conditions of the agreement entered under subsection
103, paragraph “d”, the authority shall revoke, reduce,
11terminate, or rescind the additional first-year depreciation
12the business may claim. If a business has already filed a
13tax return in which the business computed its net income by
14applying section 168(k) of the Internal Revenue Code, the
15business shall file an amended return with the department of
16revenue without applying section 168(k).
   176.  Rules.  The authority and the department of revenue
18shall adopt rules as necessary for the implementation and
19administration of this section.
20DIVISION VI
21ENERGY INFRASTRUCTURE REVOLVING LOAN PROGRAM
22   Sec. 31.  Section 476.10A, subsection 2, Code 2021, is
23amended to read as follows:
   242.  Notwithstanding section 8.33, any unexpended moneys
25remitted to the treasurer of state under this section shall be
26retained for the purposes designated. Notwithstanding section
2712C.7, subsection 2, interest or earnings on investments or
28time deposits of the moneys remitted under this section shall
29be retained and used for the purposes designated, pursuant to
30section 476.46.

31   Sec. 32.  Section 476.46, subsection 2, paragraph e,
32subparagraph (3), Code 2021, is amended to read as follows:
   33(3)  Interest on the fund shall be deposited in the fund.
34A portion of the interest on the fund, not to exceed fifty
35percent of the total interest accrued, shall be used for
-22-1promotion and administration of the fund.

2   Sec. 33.  Section 476.46, Code 2021, is amended by adding the
3following new subsections:
4   NEW SUBSECTION.  3.  The Iowa energy center shall not
5initiate any new loans under this section after June 30, 2021.
6   NEW SUBSECTION.  4.  Loan payments received under this
7section on or after July 1, 2021, and any other moneys in the
8fund on or after July 1, 2021, shall be deposited in the energy
9infrastructure revolving loan fund created in section 476.46A.
10   Sec. 34.  NEW SECTION.  476.46A  Energy infrastructure
11revolving loan program.
   121.  a.  An energy infrastructure revolving loan fund is
13created in the office of the treasurer of state and shall be
14administered by the Iowa energy center established in section
1515.120.
   16b.  The fund may be administered as a revolving fund and may
17consist of any moneys appropriated by the general assembly for
18purposes of this section and any other moneys that are lawfully
19directed to the fund.
   20c.  Moneys in the fund shall be used to provide financial
21assistance for the development and construction of energy
22infrastructure, including projects that support electric or gas
23generation transmission, storage, or distribution; electric
24grid modernization; energy-sector workforce development;
25emergency preparedness for rural and underserved areas; the
26expansion of biomass, biogas, and renewable natural gas;
27innovative technologies; and the development of infrastructure
28for alternative fuel vehicles.
   29d.  Notwithstanding section 8.33, moneys appropriated in this
30section that remain unencumbered or unobligated at the close of
31the fiscal year shall not revert but shall remain available for
32expenditure for the purposes designated until the close of the
33succeeding fiscal year.
   34e.  Notwithstanding section 12C.7, subsection 2, interest
35or earnings on moneys in the fund shall be credited to the
-23-1fund. A percentage of the total interest credited to the fund,
2not to exceed fifty percent, shall be used for promotion of
3the energy infrastructure revolving loan program and for the
4administration of the fund.
   52.  a.  The Iowa energy center shall establish and administer
6an energy infrastructure revolving loan program to encourage
7the development of energy infrastructure within the state.
   8b.  An individual, business, rural electric cooperative, or
9municipal utility located and operating in this state shall be
10eligible for financial assistance under the program. With the
11approval of the Iowa energy center governing board established
12under section 15.120, subsection 2, the economic development
13authority shall determine the amount and the terms of all
14financial assistance awarded to an individual, business, rural
15electric cooperative, or municipal utility under the program.
16All agreements and administrative authority sha11 be vested in
17the Iowa energy center governing board.
   18c.  The economic development authority may use not more than
19five percent of the moneys in the fund at the beginning of each
20fiscal year for purposes of administrative costs, marketing,
21technical assistance, and other program support.
   223.  For the purposes of this section:
   23a.  “Energy infrastructure” means land, buildings, physical
24plant and equipment, and services directly related to the
25development of projects used for, or useful for, electricity or
26gas generation, transmission, storage, or distribution.
   27b.  “Financial assistance” means the same as defined in
28section 15.102.
29   Sec. 35.  ALTERNATE ENERGY REVOLVING LOAN FUND — MONEYS
30TRANSFERRED AND APPROPRIATED.
  Any unencumbered or unobligated
31moneys remaining after June 30, 2021, in the alternate energy
32revolving loan fund created pursuant to section 476.46, are
33transferred and appropriated to the energy infrastructure
34revolving loan fund created pursuant to section 476.46A, to be
35used for purposes of the energy infrastructure revolving loan
-24-1program.
2EXPLANATION
3The inclusion of this explanation does not constitute agreement with
4the explanation’s substance by the members of the general assembly.
   5This bill relates to matters under the purview of the
6economic development authority and the Iowa finance authority.
7The bill is divided into divisions.
   8DIVISION I — INVESTMENTS IN QUALIFYING BUSINESSES AND
9EQUITY INVESTMENTS IN INNOVATION FUNDS. Under current law
10the authority must allocate $2 million to investments in
11qualifying businesses and $8 million to equity investments in
12innovation funds (equity investments). The division limits
13the authority’s tax credit allocations for investments in
14qualifying businesses and equity investments to a maximum
15aggregate of $10 million. The division requires the authority
16to determine on or before June 30 of each fiscal year the
17amount of tax credits to be allocated to each. In addition,
18any amount of tax credits allocated and not awarded in that
19fiscal year must be reallocated to either investments in
20qualifying businesses or to equity investments for the next
21fiscal year, and those tax credits do not count towards the
22maximum aggregate of $10 million. This applies to tax credits
23allocated on or after the fiscal year beginning July 1, 2021,
24and for each fiscal year thereafter.
   25The division modifies the maximum amount of an investment
26tax credit that may be issued to a natural person and the
27person’s spouse or dependent from a calendar year basis to a
28fiscal year basis. The maximum amount of tax credits that may
29be issued for equity investments in any one qualifying business
30is also modified from a calendar year to a fiscal year.
   31The division is effective upon enactment.
   32DIVISION II — GROW IOWA PROGRAM. The division directs
33the members of the authority appointed by the governor and
34in whom the powers of the economic development authority are
35vested (board) to establish, and the authority subject to
-25-1direction and approval by the board to administer, a grow Iowa
2program (program) to assist communities in the development
3of regionally significant quality of life projects that
4leverage local community assets in coordination with economic
5development and workforce attraction and retention planning.
6An applicant may submit a coordinated application to the board
7for financial assistance for the applicant’s project under
8the program. “Applicant” is defined in the bill. Financial
9assistance may include but is not limited to grants, loans,
10forgivable loans, pledges, credit enhancements, and financing
11instruments. “Coordinated application” is defined as an
12application submitted by an applicant that includes input
13from all municipalities impacted by the proposed project,
14input from a nongovernmental organization that supports the
15proposed project, and a statement regarding coordination with
16local stakeholders. The coordinated application must include
17specific information as detailed in the division.
   18The aggregate cost of an applicant’s project must be at
19least $10 million for an applicant to be eligible to receive
20financial assistance under the program. An applicant, or the
21board, may divide an applicant’s project into component parts
22and the board may award financial assistance under the program
23to one or more component parts of an applicant’s project.
24An applicant must demonstrate financial and nonfinancial
25support for the applicant’s project, which may be from public
26or private sources. “Nonfinancial support” is defined in
27the division and must not total more than 25 percent of the
28aggregate cost of the project. The financial and nonfinancial
29support for the applicant’s project must equal at least 50
30percent of the aggregate cost of the project if the project is
31located in a county with a population equal to or greater than
3250,000, and at least 40 percent of the aggregate cost of the
33project if the project is located in a county with a population
34of less than 50,000.
   35The criteria for an applicant’s project to be eligible for
-26-1financial assistance is detailed in the division. The board
2cannot approve a coordinated application that seeks financial
3assistance to refinance any loan, or pay off any promissory
4note, that has been executed prior to the date of submission
5of the coordinated application. The board also cannot approve
6a coordinated application for a project for which financial
7assistance has previously been awarded under the program,
8unless the applicant can demonstrate that any additional
9financial assistance approved by the board will be used for a
10significant expansion of that project.
   11The process for review, consideration, and approval of
12applications is detailed in the division.
   13The division creates a grow Iowa fund (fund) and the moneys
14in the fund are appropriated to the board for purposes of the
15program. The Iowa finance authority is designated as the
16custodian of the fund and must disburse moneys contained in the
17fund as directed by the board. The fund must be administered
18by the board. An applicant cannot receive more than $50
19million in financial assistance from the fund.
   20Revenue for the fund must include but is not limited
21to the proceeds of bonds issued to capitalize and pay the
22costs of the fund and investment earnings on the proceeds,
23interest attributable to investment of money in the fund or an
24account of the fund, and moneys in the form of a devise, gift,
25bequest, donation, federal grant or other grant, reimbursement,
26repayment, judgment, transfer, payment, or appropriation from
27any source intended to be used for purposes of the fund.
   28The division provides that the authority may create and
29establish one or more special funds, to be known as “bond
30reserve funds”, to secure one or more issues of bonds or notes.
31The requirements related to the bond reserve funds are detailed
32in the division.
   33The authority may issue bonds upon the request of the board,
34and the authority shall have all powers necessary to issue and
35secure bonds and to carry out the purposes of the grow Iowa
-27-1fund. The authority’s general and specific bonding powers are
2detailed in the division.
   3DIVISION III — COMMUNITY ATTRACTION AND TOURISM. The
4division requires the enhance Iowa board (board) to establish,
5oversee, and provide approval of the administration of the
6grow Iowa program. Current law requires the board to oversee
7and provide approval of the administration of the vision
8Iowa program and the division eliminates that requirement.
9Current law requires an applicant that is awarded financial
10assistance by the board under both the vision Iowa program
11and the community attraction and tourism program (tourism
12program) to provide and pay at least 50 percent of the cost of
13a standard medical insurance plan for all full-time employees
14working at the applicant’s project after the completion of
15the project for which financial assistance was received. The
16division modifies this to require an applicant that is awarded
17financial assistance under the tourism program to provide and
18pay at least 50 percent of the cost of a standard medical
19insurance plan for all full-time employees working at the
20applicant’s project after the completion of the project, and
21this requirement applies to an applicant awarded financial
22assistance under the tourism program on or after July 1, 2021.
   23The division repeals Code sections 15F.301 through 15F.304,
24the vision Iowa program, and amends Code sections 12.72, 12.73,
2512.75, 15F.102, 15F.103, 15F.206, and 292.2 to conform to the
26repeal.
   27DIVISION IV — STATEWIDE TOURISM MARKETING CAMPAIGN FUNDING.
28 The division requires the department of commerce, after other
29transfers required by Code section 123.17, to transfer to
30the economic development authority from the beer and liquor
31control fund and before any other transfer to the general fund,
32an amount not to exceed $5 million annually for a statewide
33tourism marketing campaign.
   34DIVISION V — MANUFACTURING 4.0. The division establishes
35the manufacturing 4.0 technology investment program (program)
-28-1and creates the manufacturing 4.0 technology investment fund
2(fund). “Manufacturing 4.0 technology investments” is defined
3as projects that are intended to lead to the adoption of, and
4integration of, smart technologies into existing manufacturing
5operations located in the state by mitigating the risk to the
6manufacturer of significant technology investments.
   7The fund may be administered as a revolving fund and
8may consist of any moneys appropriated for purposes of the
9program and any other moneys that are lawfully available to
10the authority. The authority must use moneys in the fund
11to award financial assistance to eligible manufacturers for
12manufacturing 4.0 technology investments. Financial assistance
13may include but is not limited to grants, loans, and forgivable
14loans. The authority must establish by rule a manufacturing
154.0 review committee. The committee must review each
16application received by the authority and make recommendations
17to the members of the authority appointed by the governor
18and in whom the powers of the authority are vested (board),
19whether the board should approve or deny an application, and
20the type and amount of financial assistance to be awarded to
21an applicant. The authority must adopt rules as necessary to
22implement and administer the program.
   23The division permits the authority to approve a
24manufacturing business located in this state to claim
25additional first-year depreciation (depreciation) for certain
26investments made by the business to transition to a smart
27manufacturing environment that leverages joint capabilities of
28hardware, software, and workers in an integrated way. To claim
29depreciation, a business must make an eligible investment.
30“Eligible investment” is defined as an investment in smart
31manufacturing equipment that is digitized and interconnected,
32and that modernizes a business’s operations by supporting
33interconnectivity, decision support, customization, and
34flexibility of production runs, or that decentralizes low-level
35decision making.
-29-
   1The application process and the process for the authority to
2notify the applicant of its eligibility for depreciation are
3detailed in the division. An eligible business is required
4to enter into an agreement with the authority that specifies
5the terms and conditions that must be satisfied for the
6business to claim depreciation on its eligible investment.
7An eligible business is required to file a written report
8with the authority that states the actual date of completion
9of the business’s eligible investment, the actual dollar
10amount of the business’s eligible investment, and the actual
11placed-in-service date for the business’s eligible investment.
12After reviewing the report and verifying the actual dollar
13amount of the business’s eligible investment, the authority
14must notify the business of the amount of eligible investment
15the business may claim as depreciation. The authority must
16also notify the department of revenue of the amount of eligible
17investment the business may claim as depreciation and submit a
18list to the department of the assets deemed to be part of the
19business’s eligible investment.
   20A business that is approved by the authority for an eligible
21investment may compute its net income in the same manner as
22depreciation is calculated under section 168(k) of the Internal
23Revenue Code notwithstanding contradictory provisions in Code
24sections 422.7 and 422.35. If a business fails to complete
25the installation of its eligible investment or to comply with
26the terms and conditions of the agreement, the authority may
27revoke, reduce, terminate, or rescind the depreciation the
28business may claim, or if the business has already filed a tax
29return in which the business computed net income under section
30168(k), require the business to file an amended return with net
31income computed without the application of section 168(k).
   32The authority and the department of revenue must adopt rules
33as necessary for the implementation and administration of the
34program.
   35DIVISION VI — ENERGY INFRASTRUCTURE REVOLVING LOAN PROGRAM.
-30-1 The division modifies Code section 476.46, alternate energy
2revolving loan program, to prohibit the Iowa energy center from
3initiating any new loans after June 30, 2021. The division
4also requires that all loan payments received after June 30,
52021, be deposited, and any moneys remaining in the alternate
6energy revolving loan fund after June 30, 2021, be transferred,
7to the newly created energy infrastructure revolving loan fund.
   8The division creates an energy infrastructure revolving
9fund (fund) in the office of the treasurer of state to be
10administered by the Iowa energy center (center). Moneys in
11the fund are to be used to provide financial assistance for
12the development and construction of energy infrastructure,
13including projects that support electric or gas generation
14transmission, storage, or distribution; electric grid
15modernization; energy-sector workforce development; emergency
16preparedness for rural and underserved areas; the expansion
17of biomass, biogas, and renewable natural gas; innovative
18technologies; and the development of infrastructure for
19alternative fuel vehicles. “Energy infrastructure” is defined
20as land, buildings, physical plant and equipment, and services
21directly related to the development of projects used for,
22or useful for, electricity or gas generation, transmission,
23storage, or distribution. “Financial assistance” is also
24defined in the bill.
   25The center is required to establish and administer an energy
26infrastructure revolving loan program (program) to encourage
27the development of energy infrastructure within the state. An
28individual, business, rural electric cooperative, or municipal
29utility located and operating in this state is eligible for
30financial assistance under the program. With the approval
31of the center’s governing board, the economic development
32authority (authority) must determine the amount and the terms
33of all financial assistance awarded to an individual, business,
34rural electric cooperative, or municipal utility under the
35program. All agreements and administrative authority are
-31-1vested in the center’s governing board. The authority may
2use not more than 5 percent of the moneys in the fund at the
3beginning of each fiscal year for purposes of administrative
4costs, marketing, technical assistance, and other program
5support.
-32-
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